SBA Releases Borrower PPP Loan Forgiveness Form and Instructions
Late on May 15, the SBA released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application, including calculation instructions. The loan forgiveness form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:
- Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
- Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
- Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
- Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
- Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined
SBA noted that it will soon issue regulations and additional guidance for borrowers on completing the forgiveness form, as well as guidance for lenders detailing their responsibilities.
WBA reviewed the detailed form, calculation, and instructions over the weekend and provided additional information in light of the changes in the document to the membership on Monday. WBA also continued to update the membership throughout the weekend as other PPP related developments occurred.
To access the new form and instructions, click here to visit SBA’s website.